By Robert Bradley Jr. — February 2, 2023
“[CEO Bernard Looney] and other BP executives have suggested the company could reduce future investments in areas including solar and offshore wind, according to some. Discussions about the company’s direction have caused a rift within BP over the past year, people close to the company said.
The The Wall Street Journal published a very revealing piece yesterday. “Bernard Looney seeks to increase strategic focus, less focus on environmental goals,” reported Jenny Stasburg (February 1, 2023).
She started:
CEO Bernard Looney plans to return to oil giant’s famous elements promote renewable energyaccording to people familiar with the recent discussions.
Mr. Looney has said he is disappointed in the profits from some Oil giant’s renewable investment and plans to pursue a narrower green energy strategy, the people said. He told several people close to the company that BP needs to do more to convince shareholders of a profit-maximizing strategy in areas where it has a competitive advantage, including traditional oil and gas operations.
In several conversations, Mr. Looney has said that he plans to place less emphasis on the so-called ESG goals — a generic term for environmental, social and governance — to help clarify that those goals That doesn’t distract the company from its ability to deliver profits, the people said.
So trying to appease the enemy is becoming unfeasible even with government subsidies? After all, investments that are politically correct, but economically incorrect are in trouble. And when BP’s oil and gas enemies shouted “green” and demanded more bad investments—and threatened to sue for greenhushing—BP was wise to be wise.
Of course, BP wants it both ways. The article continues:
Looney, the people said, sees the moves as a modest near-term correction rather than a major strategic pivot for the 114-year-old company.
Investors, owners of the company, matter:
Analysts and some investors say BP is committed switch from fossil fuels and on the risk of renewable energy reducing the company’s performance. Many companies are finding it difficult to transition to new green technologies while remaining heavily dependent on traditional energy sources.
The BP spokesperson referred to the public statements Mr Looney and BP have made about the company’s strategy, including its commitment to reducing carbon emissions and shifting investments to green energy. Looney declined to comment through a spokesman.
BP is expected to report full-year earnings on February 7 after consecutive bumper quarters boosted by huge profits in its natural gas business. The company will update investors on the progress of its strategy at that time, a spokesperson said.
BP, amid UK/EU green extremism, has long tried to ‘outperform’ its competitors Big Oil and Big Gas. It started with John Browne in 1997 and downhill from there, with climate change alarms taking precedence from reality environmental and safety protocols, culminating in the Deepwater Horizon disaster. (Shell comes in second and has also have to pay.)
Back to the article:
Looney, a 32-year veteran of BP, took over as CEO in early 2020 and soon announced commitments to reduce greenhouse gas emissions, including from the oil and gas the company sells. At the time, the new targets went further than rivals planned, analysts said. Investors have questioned how renewables can offset fossil-fuel businesses that often generate higher — if unstable — profits.
Shares of BP and London-based rival Shell PLC have over the past few years lagged behind their American competitors, particularly the largest, exxon Shares of Mobil Corp. BP is up about 7% since the end of January 2020, after recovering from pandemic lows, while shares of Exxon nearly doubled over the same period.
As European oil companies, BP and Shell face tighter government and investor scrutiny of their carbon reduction plans than their US rivals, which are closely tied more with their core oil and gas businesses. Overall, however, the sector globally has been caught between some major investors and governments calling on these companies to move away from fossil fuels, while others demand the returns that these financial resources cannot afford. that product can create.
Yes, ExxonMobil has lay off Net Zero is impractical and bad public policy.
Looney knows he can’t be too bold in his transition from wind and solar etc. to the real types of energy that consumers demand.
Mr. Looney has said in several recent discussions that the company will continue to push for renewables, but with a better-tuned focus to avoid spreading resources too thin or relying too heavily on energy. replicated in its broader strategy. He has suggested that areas of further emphasis will include climate-friendly hydrogen developmentPeople said, partnerships with biogas, electric vehicles and charging networks.
He and other BP executives have suggested that the company may reduce future investments in areas including solar and offshore wind, according to some.
Discussions about the company’s direction have caused rifts within BP over the past year, people close to the company said.
Last comment
Like Enron, BP has become a anti-capitalist company, jumping on government subsidies, advocating public policies that harm the average consumer, and deceiving energy/climate realities. Much more is needed than “modest short course adjustments”. Looney and BP need to officially abandon what was announced three years ago:
“…we have set ourselves the ambition of becoming a net-free company by 2050 or earlier and helping the world reach net-zero…. We will need support from partners, investors, policymakers, customers – and trade associations…. (Bernard Looney, CEO, BP, 2020)
That support is gone. The opportunity for the company now is to educate people about the advantages of oil and gas (and coal) and use climate data to question scientific exaggeration. (The remaining not-so-green, government-subsidized investments in hydrogen, biogas and EV projects also need a rethink.) Expect some fireworks and lots of CO2 emissions from a BP regeneration.
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